Based on Memorandum Circular No. 01-P (c)-05 of the Department of Finance dated March 23, 2006, Southern Leyte is a third-class province with an income bracket between Php210 million and Php280 million as of July 2005. This income classification was based on the average annual income of LGUs as reflected in the Financial Statements for CY 2000–2003 as certified by the Commission on Audit.
Two major fund sources—the General Fund and the Special Education Fund—finance and sustain the province’s operations and development priorities. In 2009, the province generated an actual income of Php461.7 million from the General Fund, of which 96.8 percent came from Other Income where the IRA belonged. The IRA of Php444.2 million comprised 96.2 percent of the total income of the province. Local taxes amounted to Php5.1 million (1.10%); service income, Php1.1 million (0.24%); and business income, Php8.5 million (1.84 percent). The remaining Php45,552.50 (0.01 percent) came from permits and licenses.
In 2009, out of the 20 percent Economic Development Fund of Php90.9 million, the province expended Php31.9 million for 30 projects. These projects include coastal resources management, food security program, livelihood enterprise development program, health services improvement program, blood assistance, Philhealth counterpart, health and nutrition and support infrastructure to agriculture, and disaster prevention as listed in the approved Annual Investment Plan.
In 2009, the province expended 63.7 percent of its budget appropriation to personal services, 34.4 percent for maintenance and operating expenses, and the rest (1.85 percent) for capital outlay.
Personal expenses were allocated to 30 offices with a total of 1,194 employees, of whom 1 percent were elected, 62 percent were regular employees, and the rest were casual or job order employees.
The province provided a counterpart fund to finance the programs of the national government and non-government organizations. The province entered into bank loans to implement its priority programs that addressed the needs of its constituents.